Criminal Case Halts USPLabs Coverage Fight, Magistrate Says

By Steven Trader (March 31, 2016, 7:01 PM EDT) -- A Texas federal magistrate judge on Wednesday recommended pausing an excess insurer's lawsuit to avoid covering claims that workout supplement company USPLabs' products have caused serious injury or death, pending the outcome of criminal proceedings involving the company and its executives.

Gemini Insurance Co. had sued USPLabs LLC in two separate Texas federal courts, claiming it owes no defense to the supplement maker for claims that its products contain the allegedly dangerous chemical dimethylamylamine, better known as DMAA, and a substance called aegeline. A coverage lawsuit was filed by Gemini for each ingredient.

After USP asked for dismissal in both cases,...

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